SpotDraft raised $8 million in an extension round of Series B, led by Qualcomm Ventures. This new capital inflow, almost one year after the firm had already received a large portion of its Series B funding. It is an indication of the confidence that the investors have in the company and its AI-driven contract lifecycle management (CLM) services. The extension round also supports the financial strength of SpotDraft in its expansion to increase its operations and technologies.

Capital utilization

The recent investment of $8 million is an extension of the effort to propel the growth of the company. The board at SpotDraft made a special resolution to issue to Qualcomm Ventures Series B1 compulsory convertible preference shares to the extent permitted by the company filings. This funding follows a larger round of $54 million Series B funding that the company secured in the past, which was led by Vertex Growth Singapore and Trident Partners. SpotDraft has become a prominent participant in the legal-tech ecosystem with this expansion, further strengthening its position of drawing high-profile institutional investors.

The company will use the funds that it will have obtained to speed up its product development, namely, further its integration of artificial intelligence. SpotDraft plans to refine its AI-based capabilities by adding superior legal workflow optimization tools and more effective tools for in-house lawyers by simplifying a variety of legal tasks. The capital will be used in market expansion ventures as the company seeks to expand its markets in the global markets, especially in the United States and Europe.

Core offering and revenue 

The core offering of SpotDraft is an AI-based solution that is meant to streamline the whole life cycle of the contract, including drafting and redlining contracts as well as their signing and storage. The platform helps resolve the most frequent aches of a legal department, including manual reviews that are hard to read and the lack of automation in dealing with large volumes of agreements. SpotDraft allows automation of repetitive tasks so that legal professionals can invest more in higher-value strategic work, transforming the legal department into a business accelerator rather than a bottleneck.

The firm has also launched a few other almost inventive products, such as VerifAI and ClickThrough, which use generative AI to enhance the efficiency and accuracy of contract management. They help in diligence, housekeeping, and consistency in the legal documents. SpotDraft has increasingly become popular among businesses of both mid-market and large-scale enterprises as businesses seek to digitalise their operations with the help of its user-friendly interface and powerful automation capabilities.

SpotDraft has shown a tremendous expansion in several customers and revenue since its launch in 2017. During the fiscal year 2024, i.e., ending in March 2024, the company recorded significant revenue from operations, rising to around ₹60 crore, which is thrice that of the previous year. Although the company has remained in heavy growth and technology investments, thus registering flat losses of approximately ₹68 crore in the same period of time, the fact that the company has been able to scale its revenue over a short period of time has put it in a good position to sustain itself in the future.

Competing with other leading legal-tech companies like Sirion, Legistify, and Leegality, the Bengaluru and New York-based startup is competing. It offers a competitive advantage through its heavy emphasis on AI-assisted redlining and an easy-to-use interface that is simplified. SpotDraft is well-equipped to make the transition into the changing legal-tech environment, with almost $98.5 million raised so far and a post-money valuation near the $200 million mark.

Conclusion

The Series B extension of $8 million is another milestone for the company because it puts SpotDraft at the forefront of AI-driven contract management. The company is set to redefine the way legal teams work in the world with the support of Qualcomm Ventures and beyond the roadmap of 2025. With its further adoption of state-of-the-art AI features and growth of its workforce, SpotDraft is gradually approaching its goal of becoming a global, first-in-class solution to the needs of legal departments aiming to become innovative and efficient.